ROK has the following bank balances in XYZ bank:

Savings Account: $$20,000$

Checking Accounts: $($$$1,000)$ overdraft.

How should ROK Company report this $$1,000$ overdraft in their checking account?

As a current liability on their balance sheet, adding it to the balance in accounts payable.

It MUST be offset with the $$20,000$ saving account balance

It can either show it as a current liability OR offsct it with the $$20,000.$

As a seperate line item as a negative amount uncter "Cash"